An Ireland based aircraft lessor is commencing legal action against Boeing regarding the ongoing grounding of the 737 MAX. Timaero Ireland Ltd is suing Boeing over a breach of contract regarding deliveries of the aircraft, according to Reuters.
The Boeing 737 MAX has now been grounded for over three quarters of a year following a fatal crash of the type. In the meantime, however, Boeing has continued to manufacture the aircraft. This means that there are now roughly 400 737 MAX aircraft in storage. Boeing has now been forced to suspend the construction of the 737 MAX from January onwards.
New court case
Boeing has a new court case to deal with as Timaero Ireland seeks damages related to the ongoing grounding of the 737 MAX. The company has 22 of the aircraft on order, with two of these having so far been delivered.
According to Reuters, it seems as though the dispute is to do with the value of the aircraft ordered by Timaero. The leasing company told the publication:
“The 737 MAX aircraft contracted for between Boeing and Timaero are now either worthless or seriously diminished in value”
As a result, the Irish aircraft leasing company is seeking compensation from Boeing of $185 million, according to the court filing. The case has been filed with the United States District Court in the Eastern Division of the Northern District Of Illinois. It has the attached reference 1:19-cv-08234.
Simple Flying contacted a representative of Boeing who stated that the American Aerospace giant would not be commenting on the case.
What’s happening elsewhere with the Boeing 737?
Elsewhere, the Boeing 737 MAX has been in many headlines these past few weeks. Early last week, Steve Dickson, the FAA’s administrator, said that the 737 MAX would not be recertified in 2019. This was followed by the revelation that the FAA had predicted further 737 MAX accidents following the Lion Air crash if no action was taken.
On Monday, Boeing announced that it would suspend production of the 737 MAX in January. This accompanied the news that the manufacturer has almost 400 brand new MAXs in storage. Instead, the company wants to prioritize delivering aircraft that have already been manufactured, as opposed to adding to the pool of aircraft it needs to deliver.
Once the Boeing 737 MAX is recertified, the Federal Aviation Administration will then begin to issue each aircraft’s airworthiness certificate one by one. Aircraft will then be delivered to airlines, a process which could take quite some time. It is unclear exactly when recertification might be achieved. The delay in recertification has caused demand for 737 pilots in China to dry up.
Do you think Timaero is right to sue Boeing over the 737 MAX? Who do you think will win the case? Let us know your thoughts in the comments!